This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 46 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which source of finance is typically associated with the issuance of company stock or ownership shares? A) Equity Financing. B) Trade Credit. C) Short-term Loans. D) Debt Financing. Show Answer Correct Answer: A) Equity Financing. 2. Markets in which existing, already outstanding securitiesare traded among investors. A) Secondary markets. B) Capital markets. C) Primary markets. D) Money markets. Show Answer Correct Answer: A) Secondary markets. 3. Forecast by analysts retention growth model and historical growth rates are methods used for an A) Estimate growth ratio. B) Estimate future growth. C) Estimate option future rate. D) Estimate option present rate. Show Answer Correct Answer: B) Estimate future growth. 4. Which of the following is not a reason why charitable giving is good for businesses? A) Qualifies you for reduced corporate tax. B) Boosts employee morale. C) Provides financial incentives to the community. D) Helps create a better community. E) Increases your marketing reach. Show Answer Correct Answer: C) Provides financial incentives to the community. 5. This plastic card allows you to buy a good or service and pay for it now from a bank account that it is linked to. A) Debit card. B) Gift card. C) Credit card. D) Prepaid card. Show Answer Correct Answer: A) Debit card. 6. Of the following, which is NOT an activity engaged in by a financial intermediary? A) Matching borrowers and lenders. B) Bearing risk. C) Managing retirement portfolios for large classes of employees. D) All of the above are activities of financial intermediaries. Show Answer Correct Answer: D) All of the above are activities of financial intermediaries. 7. You invest Rs 800 in an account that pays 6% interest, compounded annually. How much money do you have after five years? A) 975.68. B) 1710.58. C) 898.09. D) 1070.58. Show Answer Correct Answer: D) 1070.58. 8. Which of the following is not a discounting technique of capital budgeting A) Profitability index. B) Internal rate of return. C) Accounting rate of return. D) Net present value. Show Answer Correct Answer: C) Accounting rate of return. 9. If you invest $ 100, 000 today at 12% interest rate for one year, what is the amount you will have at the end of the year? A) $ 90, 909. B) $ 112, 000. C) $ 100, 000. D) None of the above. Show Answer Correct Answer: B) $ 112, 000. 10. .... model of cash management attempts to minimization of total cost? A) S.F Bradley. B) Baumal's. C) Miller-orr. D) None of above. Show Answer Correct Answer: B) Baumal's. 11. The concept that increases the return on equity shares with the change in capital structure of a company A) Trading on equity. B) Financial planning. C) Capital budgeting. D) Trading on debentures. Show Answer Correct Answer: A) Trading on equity. 12. You must file your federal and state income taxes by April ..... A) Taking. B) 1st. C) 15th. D) None of above. Show Answer Correct Answer: C) 15th. 13. True or False:Expenses are things you spend money on A) False. B) True. Show Answer Correct Answer: B) True. 14. What qualifications are necessary for financial management training? A) A finance degree. B) At least 3 years of accounting experience. C) A degree in accounting. D) At least 5 years of finance experience. Show Answer Correct Answer: B) At least 3 years of accounting experience. 15. Mr Liew and his wife have a total income of RM12 600 a month. They have three children and they would like to save an amount of RM250 000 for their children's education in 15 years from now. What is the minimum amount they need to save every month for their education fund? A) RM 1 360. B) RM 1 380. C) RM 1400. D) None of above. Show Answer Correct Answer: B) RM 1 380. 16. Commercial paper is the instrument of ..... A) Secondary market. B) Money market. C) Capital market. D) Primary market. Show Answer Correct Answer: B) Money market. 17. The federal program that assists older Americans with insurance and income is called A) Physician's Mutual Insurance. B) State Income Tax. C) Federal Income Tax. D) FICA (Federal Insurance Contribution Act). Show Answer Correct Answer: D) FICA (Federal Insurance Contribution Act). 18. Amount by which total revenues exceeds total revenues. A) Net Loss. B) Revenues. C) Net Income. D) Expenses. Show Answer Correct Answer: C) Net Income. 19. A business organization can obtain funds from- A) Issue of preference or equity share capital. B) Issue of debentures. C) Loan from banks and financial institution. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Current assets are the assets that are either used up or converted to cash during the normal cycle of business. A) True. B) False. Show Answer Correct Answer: A) True. 21. A ..... is a financial plan that reflects anticipated revenue and shows how it will be allocated in the operation of the business. A) Budget. B) Accounting equation. C) Financial forecast. D) Financial plan. Show Answer Correct Answer: A) Budget. 22. If the "original price" a item is $ 18.00 and has a 15% discount, what is the new discounted sale price: A) $ 18.50. B) $ 15.00. C) $ 15.30. D) $ 2.70. Show Answer Correct Answer: C) $ 15.30. 23. Calculate the cash flow for Mr. Rabbani Active Income:RM3, 000Passive Income:RM350Fixed Expenses:RM 2, 300Variable Expenses:RM 250 Then, determine whether it is Deficit or Surplus. A) 1000 (Surplus). B) -800 (Deficit). C) 800 (Surplus). D) -1000 (Deficit). Show Answer Correct Answer: C) 800 (Surplus). 24. Decrease in accounts payable A) Investing Activities. B) Operating ACtivities. C) Financing Activities. D) None of above. Show Answer Correct Answer: B) Operating ACtivities. 25. Which of the following is not an advantage of separation of ownership and management of corporations? A) Transfer of ownership can be facilitated without affecting the operations of the firm. B) Professional managers can be hired. C) Agency costs are incurred. D) Corporations can exist forever. Show Answer Correct Answer: C) Agency costs are incurred. 26. How long has it has to been if you have moved for you not to report it on your credit report? A) 3 years. B) 4 years. C) Pluto. D) 1 year. E) 2 years. Show Answer Correct Answer: E) 2 years. 27. Stock market is bullish, company must raise funds through A) Debt. B) Equity. C) Both. D) None. Show Answer Correct Answer: B) Equity. 28. ASSETS = LIABILITIES + OWNER'S EQUITY is known as the, ..... A) Accounting equation. B) Income statement. C) Financial statements. D) Accounts payable. Show Answer Correct Answer: A) Accounting equation. 29. Marginal cost of capital is the cost of A) Additional Sales. B) Additional Funds. C) Additional Interests. D) None of the above. Show Answer Correct Answer: B) Additional Funds. 30. Paulo plans to buy a holiday villa in five years' time for cash. He estimates the cost will be $ 1.5m. He plans to set aside the same amount of funds each year for five years, starting immediately and earning a rate of 10% interest per annum compound. To the nearest $ 100, how much does he need to set aside each year? A) $ 223, 400. B) $ 223, 300. C) $ 223, 100. D) $ 223, 200. Show Answer Correct Answer: A) $ 223, 400. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books